3 Solutions to Improve Your Bad Credit

Based on brand new survey data, the ABA YLD has issued a landmark report on the current state of law student loan debt. Among the many findings, we learned that more than 75 percent of respondents had over $100,000 in student loan debt and almost 90 percent of respondents said their debt had a major impact on important life decisions. To learn more about the report’s findings and proposed solutions, watch our new webinar replay Understanding and Navigating the Student Debt Crisis. (Replay is free for ABA members. Login required.)

Credit trouble is an equal-opportunity affliction. And as the coronavirus crisis persists, more and more of us are showing symptoms. A doctor might call the two co-morbidities. As a lawyer, you might argue that the pandemic amounts to extenuating circumstances, and the penalty for missing credit payment deadlines should be minimal. Some credit card companies agree. They’re offering qualified cardholders leniency by waiving late fees, temporarily lowering interest rates, setting up payment plans, and otherwise providing financial assistance.

There are lots of reasons people get into credit trouble. Pandemic-related job losses aside, some borrowers simply have bad habits: too many shopping sprees and fancy restaurant meals can lead to carrying large, high-interest credit card balances. Trying to juggle crushing law school debt, mortgages, and car loans is a difficult reality for many lawyers in the early years of their practice. Some of us discover we have a spouse with a spending problem—a little too late. In recent years, identity theft has become one of the chief causes of sinking credit scores. But whatever the source of your credit ills, there are a few different lifeboats that may save you from drowning.